Collective Mining CEO Ari Sussman: This Is The Most Unusual Bull Market Cycle
Ari Sussman had several notable observations from his latest investor presentations and meetings in New York City
Earlier this month at PDAC, Collective Mining (NYSE:CNL, TSX:CNL) CEO Ari Sussman spoke with Paul Harris of Kitco. Ari had some interesting comments on a number of topics including Canadian companies listing in the US, generalist investor interest in the resource sector, and M&A.
On generalist funds being an important source of capital for the junior mining sector:
“We’re going to see these financings grow in size, and broaden out. Broaden out big time. This is the most unusual cycle. It’s the first time I’ve ever seen resource-focused funds not leading it, they don’t have inflows. The flows are into generalist funds, they are picking up the mantle and they are going to take this space forward.”
On the importance of companies listing in the US:
“80% of global capital in stock markets is in the United States. How do you not list there and access it? When you go into the United States and you say “hi we're listed in Canada”, the majority of individuals say “how do I buy in Canada? it's too complicated”. I'm the firmest believer that every company should US list, it's changed drastically over the last 10 years, and so that's where you need to be. The money is there, chase the money, and that trend is only going to continue.”
On how junior resource financing has changed over the years:
“I went to New York a few weeks back and I did a combination of institutional and retail marketing and there's a change. My retail presentations were oversold, they were overflowing out of the rooms. I was getting meetings with generalist investors for the first time. They aren’t buying Collective Minings (junior miners) yet, but they’re now starting to learn, and they’re seeing the enormous margin expansion that’s going on at the production end of the business and getting interested.”
On the M&A cycle in the gold mining sector and what his company Collective Mining could be worth:
“I think the M&A cycle right now is still in the early phases where producers are buying producers, that will eventually evolve into producers buying high quality projects. Our phones and our doors are open. If that comes, I don't know if it'll be Agnico Eagle or someone else, I don't care. If someone wants to buy us for the right price, they will. But your point, you mentioned that we were bought for C$2 billion at Continental Gold, the gold price was more than $1,000 lower than it is today and margins have expanded. I'm a believer that the M&A of this cycle, if you get it right, we're looking at numbers between $2 billion and $5 billion, not $500 million to $2 billion dollars, and if we’re going to be in it let’s get that price.”
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